In November 2025, the White House unveiled a new "most favored nation" (MFN) policy aimed at lowering domestic prices for glucagon-like peptide-1 receptor agonist drugs, commonly known as GLP-1RAs. The initiative includes agreements with multiple pharmaceutical manufacturers to reduce costs for medications such as Ozempic, Wegovy, Mounjaro, and Zepbound in the U.S.
The MFN policy ties the cost of these drugs in the United States to prices paid in other wealthy countries, setting a benchmark that could potentially make them more affordable. However, experts are divided on whether this approach will be sufficient for Medicare to break even on the reimbursement rates for these medications.
Medicare currently reimburses GLP-1RAs at significantly higher rates than those charged internationally, which has led to concerns about financial sustainability in the long term. The new pricing deals aim to narrow that gap by aligning U.S. prices with international benchmarks, but they do not address other factors such as manufacturing costs or distribution expenses.
Some argue that the MFN policy could help bring down drug prices and make these treatments more accessible for millions of Americans who rely on Medicare coverage. Others caution that without additional measures to control overall healthcare spending, the financial burden on Medicare might still be too great.
The success of this strategy will depend on how quickly pharmaceutical companies can adjust their pricing strategies in response to the new policy, as well as whether other stakeholders such as insurers and patients are willing to accept lower reimbursement rates. As the U.S. continues to grapple with high drug costs, these negotiations could set a precedent for future healthcare reforms aimed at making essential medications more affordable.
